Irs Mileage Rate Calculator

IRS Mileage Rate Calculator

Understanding IRS Mileage Rates and Deductions

The Internal Revenue Service (IRS) provides standard mileage rates that taxpayers can use to deduct the ordinary and necessary expenses of operating a vehicle for business, charitable, medical, or moving purposes. Using these standard rates simplifies the process of calculating your deductible vehicle expenses, as it eliminates the need to track numerous individual costs like gas, oil, tires, and repairs.

When Can You Use the Standard Mileage Rate?

You can use the standard mileage rate if you have driven your vehicle for any of the following purposes:

• Business: This includes travel for business meetings, visiting clients or customers, and travel between work locations.
• Medical: This applies to travel to and from medical appointments or treatments. The medical mileage deduction has specific AGI limitations, and is only deductible as an itemized deduction (subject to the 7.5% AGI threshold for medical expenses).
• Moving: For members of the U.S. Armed Forces on active duty, moving expenses that are due to a permanent change of station may be deductible. For other taxpayers, moving expense deductions are generally suspended for tax years after 2017, unless you are in the military.

IRS Mileage Rates by Year

The IRS typically updates these rates annually to reflect changes in operating costs. Here are the rates for recent tax years:

• 2024: 67 cents per mile for business, 22 cents per mile for medical and moving (for active duty military).
• 2023: 65.5 cents per mile for business, 22 cents per mile for medical and moving (for active duty military).

It's important to note that for business use, you must choose to use either the standard mileage rate or deduct your actual vehicle expenses. You cannot do both. If you choose the standard mileage rate for the first year you use your car for business, you can switch to actual expenses in later years. However, if you choose actual expenses first, you cannot switch to the standard mileage rate later.

How the Calculator Works

This calculator simplifies the process of determining your potential mileage deduction based on the IRS standard rates. Simply input the total number of miles you drove for business, medical, and moving purposes for the selected tax year. The calculator will then apply the appropriate IRS mileage rate for that year to each category and provide a total estimated deduction. Remember to consult with a tax professional or refer to IRS publications for the most accurate and up-to-date information regarding your specific tax situation.

Estimated Mileage Deduction:

Total Estimated Deduction: $" + totalDeduction.toFixed(2) + "